A 2-2 tie vote at the Virgin Valley Water District (VVWD) meeting Tuesday night blocked a proposed new water share lease agreement with the Southern Nevada Water Authority (SNWA) and allowed a version that was discussed at VVWD’s May 15 meeting to take effect.

Tuesday’s proposal was revamped from the May 15 version. It clarified the agreement’s language — easing possible problems with current lease holders — based on input from attorneys with Wolf Creek and Conestoga golf courses.

Board member Kraig Hafen recused himself because he owns a portion of the Mesquite and Bunkerville irrigation companies (BIC and MIC) from which the shares will be leased.

Sandra Ramaker, VVWD treasurer, and Ted Miller, VVWD president, voted against the agreement while members Rich Bowler and Kenyon Leavitt voted in favor.

Tuesday’s tie means the version brought before the MVWD board May 15 will go to SNWA board at its next meeting for approval and ratification, said Kevin Brown, VVWD general manager.

“I didn’t vote against the language,” said Ramaker, who voted against the agreement in May as well. “I voted against the agreement.”

Ramaker said she believes it’s wrong for VVWD to send water down to SNWA.

“It would be one thing if it was 11 shares here and 14 there,” she said. “Someone said we have always leased some water to SNWA.”

That’s not a problem, she said.

But the purpose of the newest agreement is not just leasing, it’s leasing to recover $4 million from SNWA, a plan concocted at settlement talks during litigation in the case of Virgin Valley Water District vs. Michael Johnson, et al.

Ramaker said she has a problem with that.

“I believe if we keep leasing these shares (with that goal in mind) we are going to wind up losing golf courses,” she said. “We need to find another way of recovering the $4 million. Otherwise, we are selling Mesquite down the river.”

Miller said he voted against the changed agreement because he believed it didn’t need changing.

“I didn’t see anything wrong with it,” he said. “And SNWA has verbally agreed to the first (agreement). Why rock the boat?”

Miller said he believes the price quoted to SNWA for the leases is closer to fair market value, especially when considering ratepayers paid $70,000 per share when they were purchased.

“We are still paying on those, with bonds,” he said. “At that rate, SNWA is getting a good deal and the golf courses at $250 per leased share are getting a phenomenal deal.”

The civil suit, Virgin Valley Water District vs. Michael Johnson, et al., was based on complaints filed by VVWD over deals in 2005 and 2008 in which former VVWD General Manager Mike Winters and hydrologist Michael Johnson allegedly manipulated sales of water rights among John Lonetti, VVWD and SNWA. Robert Coache, former Nevada deputy water engineer, facilitated the allegedly illegal deals at the state level.

Lonetti was reportedly paid $15,000 per share, some $2 million more than VVWD claims they were worth, according to court documents.

In other action, the Board approved $20,000 for temporary repairs to a sinking pipe in the Highland Hills subdivision. VVWD staff will install valves on the pipe so water to the pipe can be turned off. No water will flow through the pipe, making a breakage a non-existent issue as far as water loss is concerned.

Highland Hills has been under special scrutiny for some time because some subdivision homes were built atop the city’s old landfill. Others were constructed closer than is allowed by law.

Residents, contractors, the Mesquite City Council and the Southern Nevada Health District are among those fighting over who bears responsibility for building the homes where they shouldn’t be and then allowing residents to move into them.

Until legal responsibility is determined, Brown, VVWD’s general manager, said the district should be proactive in addressing subdivision problems, which may prevent additional costs later.

Part of the $20,000 allotted by VVWD will pay for moving a meter and lateral for a Highland Hills home that would otherwise be left with no water.

Tuesday night the VVWD also approved continuing to lease one MIC water share for $933.40 and eight BIC shares for $1,203.80 each to SNWA. The previous lease expires Sept. 30, and the new one would begin Oct. 1.

The board also approved repealing Ordinance III fees for Bunkerville residents, the final step in abandoning a secondary system and putting all residents on VVWD’s culinary system. The secondary system was shut off June 13.

VVWD approved $39,150 to repair asphalt on Pioneer Boulevard that was damaged when a water line broke June 6. Staker and Parsons will start repairs in the next couple of weeks, while VVWD staff will repair two more breaks on the road near the Eureka Casino and Hotel, Brown said.

Barbara Ellestad, a candidate running for the VVWD board who attended the meeting, joked that the city loves the water district because by the time its staff is done fixing broken pipes Pioneer Boulevard will have been completely repaved.

Finally, the board approved amendments to the FY 2013-14 budget.

The final numbers produced a disappointing result, said Wes Smith, VVWD accountant. They showed revenue at $167,000 less than forecast while expenses were $243,632 higher contributing to a short fall of $214,632. That will be mirrored in this year’s budget.

The next VVWD meeting is scheduled at 5 p.m., July 1, at the office, 500 Riverside Road.